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| To spread your money around in order to lower the risk of your investments. |
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| The availability of your money. Cash is very liquid; real estate is not. |
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| Investors pool their money together to invest it in the stocks of 90 to 200 companies in each mutual fund. |
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| The probability of getting your money back from an investment. |
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| The higher the risk, the greater the expected return on investment. The lower the risk, the lower the return. |
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| A piece of ownership in a publicly traded company. |
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| Fees paid to the mutual fund company when selling a mutual fund. |
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| Quarterly payout of profits by a company to all shareholders. |
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| For a mutual fund, an annual percentage the fund takes as payment. Expense ratios of different funds can be compared to find the best value. |
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| The FDIC (Federal Deposit Insurance Corporation) is a government agency that insures depositors' money. |
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| Fees paid to the mutual fund company as an entry requirement into certain mutual funds. |
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| Rise in prices that effectively makes cash have less buying power. |
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| A safe, low-return investment available from banks. There is generally no minimum deposit for this type of account, making it perfect for kids and teens just starting out. |
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| Year to Date Return (YTD) |
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Definition
| On a mutual fund statement, a comparison of how the fund has done compared to its value on the first of the year. |
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| For a savings account, the percentage of interest earned annually. For a stock, the annual dividend divided by the share price. |
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| Separate types of investments, such as stocks/stock mutual funds, bonds/bond funds, money market accounts, and international stocks/international stock funds. |
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| When you sell a stock for more than you paid for it, the difference is called a capital gain. |
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| When what you sell a stock for is less than what you originally paid for it, the difference is called a capital loss. |
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| A share in a company's assets and profits. The ownership of a publicly traded company is split up into the shares of stock being traded and held |
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| Money paid by a corporation to each shareholder. |
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| A mutual fund or account that invests in short-term, liquid investments. |
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| A mutual fund is a pool of stocks, bonds, and other securities managed by an investment company. |
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| An incorporated business that does not trade shares of stock on an open market. |
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| An incorporated business owned jointly by all stockholders. |
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| The annual amount of money an investment makes, given as a percentage. |
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| The chance that an investment makes. |
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| Monetary increase that an investment makes. |
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| A time with generally falling stock prices. |
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| Stocks issued by solid and reliable companies with long records of growth and stability. |
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| Money loaned to the government, corporations, or municipalities that pays the investor interest. |
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| A time with generally rising stock prices |
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| Stock of companies that produce such staples as food, beverages, and pharmaceuticals, and insurance companies. |
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| Owning a collection of investments such as stocks from different industries and small and large companies, bonds, and money market funds for cash, in order to spread risk and have a safer investment overall. |
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| Stocks of companies that generally do not pay dividends or pay only very small dividends. |
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| The collection of investments you personally hold, including stocks, bonds, money market accounts, and savings accounts. |
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| Stocks of very large companies such as wal mart, General Electric, and IBM, that have a market capitalization of between $10 billion and $200 billion. |
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| A collection of investments tailored to your investment risk tolerance and time horizon. |
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| Stocks of largely unknown companies with smaller market capitalization. |
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